Senate Bill Could Weaken The Fed

[Purveyor]

Source: Associated Press

(09-21) 14:05 PDT WASHINGTON (AP) --

Consensus is building in the Senate for legislation that would significantly weaken the Federal Reserve by stripping its power to oversee banks and hand that job to a single federal bank regulator.

The proposal by Senate Banking Committee Chairman Christopher Dodd to merge federal prudential oversight into a single regulator differs from a plan by President Barack Obama. But Democratic aides say the proposal is gaining traction among Dodd's colleagues who think the Fed didn't do enough to prevent the current market crisis.

Sen. Richard Shelby of Alabama, the top Republican on the banking panel, hasn't publicly endorsed the deal and a spokesman said he still was reviewing his options. But he has made no secret of his displeasure with the Federal Reserve.

"If you look at the record here of the failure of the regulatory bodies, all roads seem to lead to the Federal Reserve," Shelby said.

Since its creation almost a century ago, the Fed has grown into a major power broker and guardian of the financial system. It plays various roles on the government's behalf in protecting the economy, including the supervision of banks to ensure the "safety and soundness" of the financial system and enforcement of rules to protect consumers.



Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2009/09/21/national/w103753D73.DTL

[anonymous171]

1. Dodd better watch his back.

The Fed does not like to be challenged.

[joeybee12]

2. I don't knwo what to think...the Fed has sucked, but if Shelby likes an idea...

...better look closely at it.

[HillWilliam]

4. If ANY Republican likes a bill

there's something wrong with it.

[KamaAina]

5. Especially a financial bill from Sen. Dodd (D-AIG)

:eyes:

[Zorra]

3. Good. The Fed has done a piss poor job. Fire 'em. n/t

[bemildred]

6. Destroy the Fed, do it now, why wait? nt

[tritsofme]

7. Forgive them father for they know not what they do